How to Set Up a Company in Saudi Arabia: Fees & Steps

Entrepreneurs and investors looking to start a business in Saudi Arabia now have several streamlined options, with company formation handled electronically through the Saudi Business Center at business.sa and the Ministry of Commerce's online services. Two of the most popular structures are the single-member limited liability company (LLC) and the simplified joint-stock company.

A single-member LLC can be established by one person — whether a natural person or a legal entity — and liability is generally limited to the company's capital. Government fees come to SAR 1,200 for the commercial registration and SAR 500 for the electronic publication of the articles, plus 15% VAT. The service is normally completed immediately through the electronic channel.

The simplified joint-stock company can also be incorporated electronically, with fees of SAR 1,600 for the commercial registration and SAR 500 for electronic publication, plus 15% VAT, and is likewise typically issued immediately. Under the Ministry's current guidance, the minimum capital for the relevant formation service is SAR 5,000, though activity-specific rules may add further requirements.

Steps and extra costs

The formation process follows a clear sequence: choose the entity type and activity, reserve or select a trade name, prepare and approve the articles or bylaws, pay the electronic fees, publish the incorporation documents, and issue the commercial registration. Separate main and branch registration fees of SAR 200 and SAR 100 may also apply under current business-start guidance.

Foreign investors establishing a company under an investment license may face different requirements and fees, with listed service fees of SAR 1,200 for an LLC and SAR 1,600 for a joint-stock or simplified joint-stock company and completion within 72 hours. Business owners should also budget for municipal, sectoral, labor, tax, address, and investment requirements, which vary by activity and ownership and are not included in the company-formation fees above.

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